FYI: esieged by investor withdrawals, mutual funds that invest in risky corporate loans have been unloading big chunks of loans in recent days. The selling is driving down prices to levels not seen in more than two years and forcing banks to keep some of the unwanted debt on their balance sheets.
Lord, Abbett & Co. and Eaton Vance Management are among the fund managers selling holdings to meet redemption requests and build up cash reserves, according to people with knowledge of the market, who asked not to be identified discussing a private matter. In just the past four trading days, investors have pulled $2.2 billion from all loan mutual funds and exchange-traded funds. That brings withdrawals from the asset class to almost $9 billion since mid-November, data from JPMorgan Chase & Co. and Lipper show.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-12-19/eaton-vance-lord-abbett-seen-shedding-risky-loans-amid-rout
